Forex-Metal Daily Analysis -10/07/2012

Market review for 09.07.12: The Euro-Zone Sentix Investor Confidence index fell in July to the -29.6 points value.


Asian and European trading sessions:

Euro: Euro continued to be under pressure and traded not far from the two-year lows against the U.S. dollar in anticipation of the scheduled on today meeting of the euro zone finance ministers which would be held in Brussels. The main subject of the meeting is the discussion of the crisis control measures which were taken by the heads of European countries governments at the last month summit. The EUR / USD pair traded in a narrow range of $1.2283-$1.2317 during the European session. The result of the Euro-Zone Sentix Investor Confidence index recorded a drop to -29.6 points in July versus forecasted -26.7 points and the previous value of -28.9 points thus provided pressure on the Euro currency.The one positive thing which supported the currency today was the outcome of the German auction. Today, Germany placed semi-annual treasury bills amounting to 3.29 billion Euros. The yield of the issued securities was -0.0344% versus 0.007% recorded in the June auctions of similar securities.

British Pound: The GBP / USD pair traded today in a narrow range between $ 1.5470 – $ 1.5533 levels.

Japanese Yen: The USD / JPY pair fell to Y79.40 at the beginning of the Asian session. The high of the day was a level of Y79.77 which the pair could not overcome. During the European session the pair retreated to the level of Y79. 50.

Australian and New Zealand dollar: The Australian dollar fell even before the Asian session after reports from the Xinhua News Agency. The report in which the Chinese Premier , Mr. Wen Jiabao stated that the China government’s intention is to conduct a fine job in response to the risks associated with falling economic growth in the country provided a negative effect on the Australian currency.

American trading session:

U.S. Dollar: The currency was supported today by the results of the reports and announcements of the previous week. The Dollar Index rose today to the 83.161 value.

Gold: The Gold grew today to $1592.9 area dollars per troy ounce on the COMEX today on the background of still existed uncertainty about the interest rates in the United States as well as on report on China’s inflation of which influenced positively the Gold’s futures trading dynamics.

Silver: The Silver futures grew today to $27.5 area dollars per troy ounce on the COMEX today.

Oil: The Oil futures rose for the first time in three days on the news of strike in Norway which threatened to stop production in the largest exporter of Western Europe. Also on the rise in prices were affected by the information that Iran in response to the European embargo on oil had conducted military exercises last week and threatened to block the movement of tankers in the Strait of Hormuz. The cost of the August WTI futures on the NYMEX grew to $ 86.46 per barrel.


Technical analysis for 10.07


The pair is working out the Flag figure. The end of the figure maybe expected at 1.21813. 
Resistance: 1.23907, 1.25690, 1.26897 
Support: 1.21813, 1.19332, 1.16790 
The pair has drawn Head and Shoulders and testing Neck level. If the pair declines below 1.54842 the end of the figure maybe expected at 1.53482. 
Resistance: 1.56722, 1.58543, 1.60322 
Support: 1.54842, 1.53482, 1.52063 
The pair has risen to 0.97427 and trying to stay above this level. 
Resistance: 0.97427, 0.98512, 0.99248 
Support: 0.96220, 0.95074, 0.93949 
The pair may workout Head and Shoulders and first decline to 79.070. 
Resistance: 79.707, 80.438, 81.399 
Support: 79.070, 78.345, 77.539 
MACD shows divergence and the pair may start corrections. First aim is at 1.00907. 
Resistance: 1.02558, 1.03535, 1.04407 
Support: 1.01744, 1.00907, 1.00067